No oil output reduction even if others cut, say Saudi and Kuwait

The Saudi and Kuwaiti oil ministers said Sunday that their countries would not cut oil production even if non-OPEC members reduce their output to shore up sagging oil prices.

“No… I think it’s too late now,” Saudi Oil Minister Ali al-Naimi told reporters when asked whether OPEC would cut its output if non-OPEC producers were to lower their own.

“If they (non-OPEC) want to cut production they are welcome. We are not going to cut, certainly Saudi Arabia is not going to cut,” Naimi said on the sidelines of an energy conference in the United Arab Emirates.

Kuwaiti Oil Minister Ali al-Omair agreed.

“I don’t think we need to cut. We gave a chance to others and they were not willing to do so,” Omair said.

“OPEC will not cut. Nothing will happen until June and there is no emergency meeting,” he said.

The two countries are influential members of OPEC and along with the UAE and Qatar pump around 16 million barrels a day, or more than half of total OPEC output.

The Organisation of Petroleum Exporting Countries decided last month to maintain its production unchanged at 30 million barrels per day, which led to a slump in oil prices.

The benchmark Brent oil price is hovering around $60 a barrel after losing almost half of its value since June because of a glut in supplies, the weak global economy and the strong US dollar.